Friday, February 22, 2013

Ouch! Consumers are cutting back says National Retail Federation survey

Interesting.... the National Retail Federation recently conducted a survey that, in my opinion, really has its fingers on the pulse of consumers.  Yes, we're cutting back!  And you can thank Congress, the President, and all politicians for that.

Pass a budget!  Get spending in line and consumers won't feel that things are so uncertain.  Companies will know the lay of the land, thus they will be able to make hiring decisions as well as other important decisions that they need to with confidence because they won't be kicking their own cans down the road to the next budget showdown to see if Congress actually passes a budget instead of another CR that just moves the line of scrimmage and doesn't advance the game.

According to that article linked above, even Walmart has noticed a pull-back on spending.  I imagine other higher-end retailers are feeling it too.  Americans are cutting back on clothing purchases, dining out, and much more. 

Gas has skyrocketed here in the past two weeks.  Last week, I saw one gas station --- a BP --- raise its price from $3.39 9/10ths to $3.55 9/10ths in a one-day span. Ouch.  That's a 16 cent per gallon increase.  Not one you want to deal with when you have to fill your minivan.

The IRS issued a press release on Valentine's Day asking the public to please only check their refund status once a day because their site was getting slammed with "Where's my refund?" requests.  What this tells me is one of two things --- or even both.  One that people are hurting and need that money.  Two that people are terrified the IRS will be furloughed due to upcoming sequester and their refunds will somehow be delayed.  I won't lie --- we filed as soon as we could.  The uncertainty of having a refund stuck in limbo was not one we wanted to experience.






2 comments:

GoldenOrchard said...

I agree with you, that's a very well written article. Financially things are just so uncertain these days. In my area gas is high too $3.85 a gallon if it does get to $5/gal as predicted by summer I'm only leaving the house for necesities LOL! ;)

Also in my area the local Kroger is going to quit doubling coupons starting in March and we're also losing our local Blockbuster. Its just so hard for businesses here to compete for customers these day.

Also, for taxes I can understand people's nervousness. Last year I had a processing delay from the IRS website for some reason and didn't get my refund until a month after I filed.

Its going to be so interesting to see how the summer is going to be for people since its travel season and the kids are out of school

Pinching Abe said...

Here's to hoping they actually pass a budget, but it's been so long, I don't know it it is possible anymore. Living in an area whose economy is dependent to a large extent on the defense industry, the perpetual CRs they pass have definitely affected the job market. The only jobs I have seen posted in the last year seem to be on the same merry-go-round. As in same job, different company because people are making lateral moves.

Others are contingent upon award - meaning not yet funded.

It's just disheartening. The lack of a budget being passed does affect the job market because of the uncertainty.